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Evaluation of Policies and Measures to Create Local Employment

Centre for Small and Medium Sized Enterprises, Warwick Business School, University of Warwick, Coventry CV4 7AL, UK

This paper argues that it is now appropriate and possible to undertake a thorough review of local economic initiatives (LEIs). The key theoretical point of the paper is to demonstrate that, from the viewpoint of economic efficiency, the marginal costs for each LEI instrument of achieving a policy objective should be equalised. The paper then takes this concept and examines it in the context of a hypothetical example of an LEI. It shows how the concept can be modified according to the particular objectives of those promoting the LEI.

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